Helping a Young Farmer Out

[Farfrae]

I have some grazing that I let a young sheep farmer have in return for some lamb for the freezer and a bit of help from him. He's now looking to rent some more land nearby and increase his flock. As he is starting out and short of capital I'm happy to help him by funding the purchase of say another 20 or 30 ewes (to start with) or so.

What we would be the fairest way to work this? Nothing complicated just the best way to protect my capital and perhaps get a small return whilst he can build his flock up a bit without having to pay the bank interest.

Any thoughts?

 

[llamedos]

I have some grazing that I let a young sheep farmer have in return for some lamb for the freezer and a bit of help from him. He's now looking to rent some more land nearby and increase his flock. As he is starting out and short of capital I'm happy to help him by funding the purchase of say another 20 or 30 ewes or so.

What we would be the fairest way to work this? Nothing complicated just the best way to protect my capital and perhaps get a small return whilst he can build his flock up a bit without having to pay the bank interest.

Any thoughts?

see @Tim W posts here http://thefarmingforum.co.uk/index.php?threads/share-farming.3767/

 

[cotswoldcs]

You're a good man. It may well be the best thing you do and he will be grateful for the rest of his life. I'm sure you can set an interest rate cheaper than the bank would offer and you can decide on how quickly it can be paid back.

 

[jimmer]

if you are not strapped and dont need the money back pronto ,i would say asking him to pay back in installments when he has stock to sell would be a very nice gesture
i bought my uncles cows years ago , i paid him the equivalent of his old milk cheque every month till they were paid for , was a welcome and amicable way to pay ,and helped me no end

 

[GTB]

I bought my uncle's flock and was given three yrs to pay back with each installment due after the sfp had arrived. It helped him reduce his tax bill and also helped me no end.

 

[BELOWAVERAGE]

If you bought some thing like a full mouth mule not too much money and a few years left in it, let him tup them and feed them etc, then when lambs are sold you have lamb money and he gets the ewe. You should with a bit of luck get a good return and he will have some more ewes that he owns, and you could keep repeating it in future years.

 

[Dry Rot]

I heard my uncle talk of a system in South Devon called "half crease". I believe it is a very old system of share farming. Anyone ever heard of that? So far as I recall, the farmer bought the flock and the new entrant did all the work and the money from lamb sales was split 50/50. But I can't remember who supplied the grazing! My grandfather was big in Devon Longwools, so probably a very old system indeed.

 

[GTB]

I heard my uncle talk of a system in South Devon called "half crease". I believe it is a very old system of share farming. Anyone ever heard of that? So far as I recall, the farmer bought the flock and the new entrant did all the work and the money from lamb sales was split 50/50. But I can't remember who supplied the grazing! My grandfather was big in Devon Longwools, so probably a very old system indeed.

Probably the farmer (landowner)

 

[CopperBeech]

My old man did similar for me. Money put forward to buy half the ewes, then a projected "income' from them figured for each year, and a percentage of that paid back to cover investment and a little interest. Over say a 2/3 year period, depending on figures. With the option for total buy out if the shepherd get lucky and comes into some money.

The problem with taking all of the lamb money, is that it leaves the shepherd with zero cash flow.

 

[Johnny400]

The guy at the bottom of the page helping out some young ones
http://www.britishfarmingawards.co.uk/awardfinalists/sheep-innovator-award/

and again
http://www.bbc.co.uk/news/uk-england-devon-24574688

 

[joe soapy]

I heard my uncle talk of a system in South Devon called "half crease". I believe it is a very old system of share farming. Anyone ever heard of that? So far as I recall, the farmer bought the flock and the new entrant did all the work and the money from lamb sales was split 50/50. But I can't remember who supplied the grazing! My grandfather was big in Devon Longwools, so probably a very old system indeed.

You make me feel old.. the "new entrant" supplied the grazing, labour and other costs.
investor supplied ewes and ram, After that would come discussions about summer grazing, replacements, vet bills
supplementry feed etc

 

[Dry Rot]

You make me feel old.. the "new entrant" supplied the grazing, labour and other costs.
investor supplied ewes and ram, After that would come discussions about summer grazing, replacements, vet bills
supplementry feed etc

That sounds right as my uncle is long gone and the system would probably have been in vogue when the problem was finding tenants, not farms!

 

[joe soapy]

That sounds right as my uncle is long gone and the system would probably have been in vogue when the problem was finding tenants, not farms!

Lots of dairy cows went the same way,, all very discrete and worked for both parties

 

[NZDan]

The guy at the bottom of the page helping out some young ones
http://www.britishfarmingawards.co.uk/awardfinalists/sheep-innovator-award/

and again
http://www.bbc.co.uk/news/uk-england-devon-24574688

Some familiar faces on there.